February 13, 2025 11:19 GMT
EM CEEMEA CREDIT: ISCTR: FY24, neutral read
EM CEEMEA CREDIT
Isbank (ISCTR; B1pos/-/BB-)
FY24 results, neutral read
- Isbank’s USD seasoned secondary bonds have tightened in z-spread terms over the last four months roughly in line with peers (see chart below). Snr unsec ISCTR 7.75 Ju29 charts @ z+275bp, whilst Tier 2 ISCTR 9.192 Jun28 charts @ z+280bp.
- Aft mkt close y’day, Isbank posted FY24 results showing net profit down 37% YoY @ TRY45.5bn on higher OpExp (+62.2% @ TRY117bn). OpInc was moderately up @ TRY141bn, +4.2% YoY, driven by strong growth across F&C (mainly payment systems) @ TRY91.4bn, +115% YoY. Quarterly, NII stands @ TRY8.8bn. Swap-adj NIM @ -0.6% missed vs guidance as pressure on margins continues (Co. cites “elevated funding costs due to tightened monetary policy”).
- Asset quality is in line with Co. guidance, with quarterly performance showing 4Q24 NPLs ratio marginally up sequentially @ 2.1%, with coverage @ 72.5% and CoR @ 124bp.
Capital position remains adequate with YE24 CET1 @ 14.4% and CAR @ 18.2% (consolidated basis, incl. forbearance).
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